Catherine Wood, founder of Ark Investment Management, said Tuesday on CNBC that she believes Tesla’s share price is expected to exceed $6,000 over the next five years. Catherine Wood says she is bullish on Tesla because she believes it won’t lose its dominance in the electric car market.
Tesla currently has a 17 percent market share in the electric car market, after Catherine Wood thought tesla would lose a third of its market share last year.
“But after a closer look at other car companies, we found that they were far behind Tesla, and we began to believe that Tesla might not lose market share, which changed our expectations for Tesla’s future.” Catherine Wood said.
Catherine Wood predicted in February 2018 that Tesla’s stock would reach $4,000 one day. Now they have raised the target price by $2,000 to $6,000.
Another key point that Catherine Wood is so bullish about Tesla’s future is the development of autonomous driving technology. Although the current real self-driving cars do not exist. But Catherine Wood believes Tesla will dominate the emerging technology of autonomous driving, as nearly 700,000 of Tesla’s existing cars are already collecting data.
“To be a winner in the field of autonomous driving and artificial intelligence, you have to have the highest quality data, and Tesla is one of them. Catherine Wood explains.
At 180 million shares, Tesla’s market value would be more than $1 trillion if the stock price exceeded $6,000. Tesla’s market capitalisation is now close to the $100 billion mark.
Apple (AAPL) broke through the $1 trillion mark for the first time in August 2018, becoming the first publicly traded company to break the trillion-dollar market capitalisation. Amazon (AMZN) followed suit, hitting trillions of dollars a month later. In August 2019, Microsoft (MSFT) also surpassed $1 trillion in market value.
Tesla continued its 2.49 percent jump to $537.92 on Tuesday, a record high, after jumping 9 percent to break through the $500 mark on Monday. Tesla’s share price has risen 30 percent since 2020, and has doubled since the end of September.